Exzeo Group (NYSE:XZO) Shares Gap Up - Here's Why

Key Points

• Exzeo Group shares gapped higher, opening at $15.58 versus a prior close of $15.17 and last trading near $15.84.
• Analyst sentiment is mixed, with recent downgrades to “hold” and a “sell” rating; the stock carries an average “Hold” rating and a $26 price target.
• The company exceeded quarterly EPS expectations, reporting $0.26 versus $0.24 expected, while revenue rose 3% year over year to $56.29 million. Exzeo also authorized a $12 million share-repurchase program, and insiders bought 6,000 shares over the past three months.

Exzeo Group, Inc. (NYSE:XZO - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $15.17, but opened at $15.58. Exzeo Group shares last traded at $15.8380, with a volume of 4,473 shares.

Analysts Set New Price Targets

A number of equities analysts have weighed in on XZO shares. Wall Street Zen lowered shares of Exzeo Group from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Zacks Research downgraded shares of Exzeo Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Exzeo Group in a research note on Friday, July 24th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $26.00.

Exzeo Group Price Performance

The firm has a 50-day moving average of $15.66 and a 200-day moving average of $15.52. The stock has a market cap of $1.42 billion and a PE ratio of 16.08.

Exzeo Group (NYSE:XZO - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. Exzeo Group had a return on equity of 38.77% and a net margin of 39.14%.The company had revenue of $56.29 million for the quarter. During the same period in the prior year, the firm posted $0.26 earnings per share. The firm's revenue for the quarter was up 3.0% on a year-over-year basis. Equities analysts forecast that Exzeo Group, Inc. will post 0.98 EPS for the current fiscal year.

Exzeo Group declared that its board has approved a stock repurchase program on Tuesday, May 26th that authorizes the company to repurchase $12.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling at Exzeo Group

In related news, CEO Paresh Patel bought 2,000 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average price of $13.26 per share, for a total transaction of $26,520.00. Following the completion of the transaction, the chief executive officer owned 1,672,013 shares in the company, valued at $22,170,892.38. The trade was a 0.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders have acquired a total of 6,000 shares of company stock worth $79,020 in the last three months. 4.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Jennison Associates LLC purchased a new position in shares of Exzeo Group in the fourth quarter valued at $14,096,000. Legato Capital Management LLC purchased a new stake in Exzeo Group during the fourth quarter valued at $1,475,000. Seven Grand Managers LLC bought a new position in Exzeo Group during the fourth quarter valued at $3,638,000. Goldman Sachs Group Inc. bought a new position in Exzeo Group during the fourth quarter valued at $12,551,000. Finally, Federated Hermes Inc. purchased a new position in shares of Exzeo Group in the 4th quarter worth $2,425,000.

About Exzeo Group

Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the “Exzeo Platform,” currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain.

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